India’s external debt stock is 78% of exports: World Bank

India’s external debt stock as a per cent of our exports stands at 78 per cent, as per the World Bank’s report on debt. The report also added further that debt service as per cent of exports stands at 8 per cent.  According to the report, net financial flows, debt and equity stood at $44,865 million, out of which $14,539 million is the net debt inflow $30,506 million is the net equity inflows. Out of the total debt, 34 per cent of that is credited by multilateral organisations, 50 per cent by private lenders, and 16 per cent is credited by bilateral lenders.

Dilemma of Debt  

The International Monetary Fund a few days back also said that India's debt may touch 100 per cent of the country's Gross Domestic Product (GDP) by the financial year 2028. The governmnet refuted the projection saying it is only a  "worse-case scenario” and not a fait accompli.

The Finance Ministry also highlighted that the debt of both the centre and states has come down since 2021. "General government debt has steeply declined to 81 per cent in financial year 2023 from 88 per cent in financial year 2021," the clarification said, adding that the centre is on track to achieve its stated fiscal consolidation aim of below 4.5 per cent by financial year 2026.

One another point highlighted by the IMF is India's general government debt is majorly rupee-denominated with external borrowings contributing a minimal amount.